HomeMy WebLinkAbout2000-05-09 Reading Housing Authority Minutes - Executive SessionREADING HOUSING AUTHORITY
MINUTES OF THE EXECUTIVE SESSION MEETING
OF MAY 9.2000
An Executive Session meeting of the Reading Housing Authority was held on Tuesday, May 9,
2000 at 8:30 P.M. at the office of the Authority, 22 Frank D. Tanner Drive in the town of
Reading, Massachusetts, with the Vice - Chairman, Mr. Kelley, presiding. Also in attendance
were Mr, Allen, Ms. Galvin and Ms. Connors as well as the Executive Director, Ms. Plansky a
Ms. Flammia. The Authority's attorney also was present for the discussion.
Upon a motion duly made by Mr. Allen and seconded by Ms. Galvin, it was
VOTED: To adjourn to Executive Session to discuss matters relative to real estate and t
return to regular session at the close of Executive Session on the following roll call vote:
Mr. Allen — aye
Ms. Galvin — aye
Ms. Connors — aye
Mr. Kelley — aye
The Chairman then declared said motion carried and said vote in effect.
Marriott Corporation
The letter to the Reading Housing Authority from Marriott Corporation dated April 21, 200(,
was reviewed. A letter from our attorney, Mr. Greco, dated May 9, 2000, was reviewed. Th
Executive Director spoke with Mr. Favaloro, who had been in contact with Marriott. Thy
principals reported to him that what they have proposed is the final offer. They do not want to
carry the debt on the books or pay for a bond. Every financial obligation is required to b�
carried on the books in some fashion.
The Board has a standing vote to require that the payments are to be secured by a mortgage o
performance bond. The Board noted that the debt would have to be reported on Marriott'
books in some fashion. The suggestion by Marriott that the Authority could lien the prope
and force the payments puts the burden of compliance with the agreement on the Authority an
not on the developer, where it should be. The Board felt that it would be highly unlikely that
judgment would be granted to close down such a facility for non - compliance with the payment
under the terms of the agreement. Mr. Greco's letter specifically states that the agreement
should be secured with a note and mortgage or some type of indemnification.
The issues of contention are:
• the Authority has proposed security of the agreement by a mortgage which could be
subrogated or by a performance bond by Marriott.
• Marriott states that the issue of security was not discussed and that this could break the
deal.
• The Authority believes that the security of the agreement is not negotiable and a mortgage
or some means of indemnification by Marriott to the Authority would be required.
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Minutes -Exec Session
5/9/2000
The elements of the financial agreement have been agreed upon as follows:
• Total of the payments will be $1,100,000.00 paid in eleven equal installments of
$100,000.00 each payment per the following schedule:
• The first payment will be due within 30 days of the issuance of the Building Permit;
• The second payment will be due on issuance of the Certificate of Occupancy, and
• The third through eleventh payments will be due annually on the anniversary date of the
issuance of the Certificate of Occupancy for the assisted living facility.
• Payment in full of all amounts due is required if the facility converts from an assisted
living facility to any other use.
Section 8 Wait List Openinz —A eal
A draft proposal for next wait list opening was distributed for the Board to review. The
Director also reported that HUD's Fair Housing and Equal Opportunity Department still has
this matter under review and will decide if they have cause to proceed further.
Upon a motion duly made by Mr. Allen and seconded by Ms. Connors, it was unanimously
VOTED: To approve and authorize the Chairman or Executive Director to sign the
Agreement between Mass. Coalition for the Homeless and the Reading Housing Authority as
presented with the noted change.
Upon a motion duly made by Mr. Allen and seconded by Ms. Galvin, it was unanimously
VOTED: To adjourn from Executive Session at 10:05 P.M. and return to regular session to
resume discussion on the listed agenda items on the following roll call vote:
Mr. Allen — aye
Ms. Galvin — aye
Ms. Connors — aye
Mr. Kelley — aye
The Chairman then declared said motion carried and said vote in effect.
Respectfully submitted,
Margar . Plansky, Secretary
and Executive Director